Focus: The precious metal needs to break the resistance of 1337 for any further hopes of an upward trend, otherwise the bias could be to the downside. The immediate support is at 1271 followed by the 1217. Strategy in Play Gold has bounced from its support zone on a 4 hour time frame as…Read More
Fundamental After a sharp move to the downside, copper is under constant pressure as Democrats and Republic are putting the fragile recovery of the US economy at risk by not resolving the political gridlock. While the treasury department may not have enough pills to swallow if US fails to resolve the debt ceiling, the volatility…Read More
Focus: The AUDUSD needs to break its resistance of 0.9633 zone to confirm its upward trend, and a break of this resistance zone will open the floor towards the next target of the 0.9850 zone.
The AUDUSD pair bounced from its support on a daily time as predicted. The support zone was given in our analysis on 6th of August. Interestingly enough, the Fibonacci has shown its power over the past few days when the uptrend was stopped when the price reached exactly at the 38.2 retracement level. The trend changed its direction once again, call it the call of the RBA (Royal Bank of Australia), exactly from the 23.6 retracement level of Fibonacci.
The 50 day moving average which is shown in the green colour has also turned its direction to the upside and it is about the cross the 100 day (shown in yellow) moving average which is a confirmation that the uptrend could pick up further steam.
However, the RSI indicator is trading in line with the price and below its trend line, and as long as it trades below its trend line we may the price retrace back to purple upward trend line before it continues its upward moveRead More
Italian political Turmoil weighing on the Euro
The Euro is under a major pressure on the back of the political turmoil which is taking place in Italy. If investors were thinking that politicians can use the weekend to come to their senses then they will be profoundly disappointed this morning as the 17 nation currency is facing pressure against all major currency pairs.
Certainly, the threats by Silvio Berlusconi to pull his five ministers out of the government is impacting the investor’s confidence this morning, and it has shattered the truce with the coalition parties by leaving the third biggest economy of the Europe with the even more ungovernable situation. To fuel the uncertainty further, a rating cut for Italy is also on the cards which is a concern for traders who wants to take a long position on the euro.